Stephens Reaffirms “Overweight” Rating for Watsco (NYSE:WSO)

Stephens reiterated their overweight rating on shares of Watsco (NYSE:WSO) in a report issued on Thursday morning, Benzinga reports. They currently have a $500.00 price target on the construction company’s stock.

Separately, Robert W. Baird boosted their target price on Watsco from $420.00 to $460.00 and gave the stock an outperform rating in a report on Thursday. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of Hold and a consensus target price of $404.25.

Watsco Stock Performance

WSO opened at $443.83 on Thursday. The business’s 50 day moving average is $411.12 and its 200-day moving average is $399.44. The stock has a market cap of $17.53 billion, a PE ratio of 34.14 and a beta of 0.90. The company has a current ratio of 2.92, a quick ratio of 1.47 and a debt-to-equity ratio of 0.01. Watsco has a twelve month low of $315.17 and a twelve month high of $451.29.

Watsco (NYSE:WSO) last announced its earnings results on Wednesday, April 24th. The construction company reported $2.17 EPS for the quarter, missing the consensus estimate of $2.26 by ($0.09). Watsco had a return on equity of 19.26% and a net margin of 7.03%. The firm had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the previous year, the firm earned $2.83 EPS. Watsco’s revenue for the quarter was up .9% on a year-over-year basis. On average, analysts predict that Watsco will post 14.19 earnings per share for the current year.

Watsco Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Shareholders of record on Monday, April 15th will be issued a $2.70 dividend. The ex-dividend date of this dividend is Friday, April 12th. This represents a $10.80 annualized dividend and a dividend yield of 2.43%. This is a boost from Watsco’s previous quarterly dividend of $2.45. Watsco’s dividend payout ratio is currently 83.08%.

Hedge Funds Weigh In On Watsco

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wetzel Investment Advisors Inc. purchased a new position in shares of Watsco during the 4th quarter valued at $25,000. First PREMIER Bank purchased a new position in shares of Watsco during the 1st quarter valued at $25,000. Contravisory Investment Management Inc. purchased a new position in shares of Watsco during the 4th quarter valued at $26,000. Cullen Frost Bankers Inc. purchased a new position in shares of Watsco during the 4th quarter valued at $28,000. Finally, Rise Advisors LLC purchased a new position in shares of Watsco during the 4th quarter valued at $30,000. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.